Amended Permendag 31/2023 Focuses on 5 Key PMSE Aspects
Trade Minister Budi Santoso affirmed the government’s commitment to strengthening digital trade governance in Indonesia. This strategic move involves refining regulations and tightening oversight of Electronic System Trade (PMSE).
The government is currently preparing amendments to Minister of Trade Regulation (Permendag) No. 31 of 2023 concerning Business Licensing, Advertising, Development, and Oversight of Business Actors in PMSE. This move aims to address the increasingly dynamic digital ecosystem while creating a fair playing field between online and offline trade.
“The core principle of this policy is ensuring all offline regulations are strictly adhered to online without exception. The government also encourages prioritisation of domestic products and requires foreign platforms to have a legitimate representative in Indonesia for more effective oversight,” said Budi Santoso in a press release on Thursday (28 May).
As of March 2026, the Ministry of Trade (Kemendag) has conducted intensive offline oversight of 104 PMSE business actors, including marketplaces, online retailers, and merchants. The results showed 37 received first written warnings and two second warnings.
In addition to offline checks, cyber patrols on 21 PMSE platforms identified thousands of violations. Kemendag has requested the removal of 2,639 non-compliant electronic advertisements.
Details of the advertisements targeted include:
Besides ad removal, Kemendag has strictly penalised 95 rogue merchant accounts. As a final enforcement measure, between Q4 2024 and Q2 2025, 107 business actors were blacklisted and subject to temporary PMSE service blocks.
These efforts aim to provide maximum protection for domestic businesses, particularly SMEs, and ensure consumer safety in digital transactions.
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